GM’s Fuel-Economy Play Includes Building More Small Engines

General Motors is revamping three plants where it builds small four-cylinder engines. The car maker says it will spend $163.2-million to improve its factories in Flint and Bay City, Mich., and in Defiance, Ohio, to support the ramping up of engine production for the Chevrolet Volt hybrid, Cruze compact sedan and another planned small car from Chevrolet.

The company is making the move in anticipation of strong demand for the Volt, Cruze and other economy cars as consumers focus more on fuel efficiency. GM’s overall strategy, which includes attempts to field vehicles with the highest fuel economy ratings in their segments, is also a stark contrast from several years ago when the company was betting its future on the notion that consumers wouldn’ t give up their large, gas-guzzling SUVs.

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